Ethereum News Today: $106M Crypto Liquidations Triggered by Bitcoin's $4K Surge

Generated by AI AgentCoin World
Monday, Aug 18, 2025 12:26 am ET1min read
BTC
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ETH
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Aime RobotAime Summary

- On August 18, 2025, crypto markets saw $106M in liquidations, with $40.43M from ETH longs amid BTC’s $4K 24-hour surge.

- Sharp BTC price swings triggered stop-loss orders, wiping out leveraged short positions as bullish momentum erased prior losses.

- ETH traded at $4,309.29 despite 3.5% 24-hour drop, while strong U.S. PPI data fueled broader market optimism.

- Analysts warn of systemic risks from leveraged trading, urging tighter crypto derivatives regulations to curb volatility-driven liquidations.

On August 18, 2025, the cryptocurrency market experienced a record $106 million in liquidations within a single hour, primarily affecting long positions in

Bitcoin
(BTC) and
Ethereum
(ETH) [1]. This event marked one of the largest concentrated liquidation episodes in recent months, with ETH liquidations alone reaching $40.43 million, as confirmed by platforms such as PANews and Coinglass [2].

The surge in liquidations was attributed to a sharp price movement in BTC, which triggered stop-loss orders and forced the closure of leveraged short positions. Traders who had bet against Bitcoin found themselves on the wrong side of a rapidly escalating market, with the asset surging nearly $4,000 within a 24-hour period [1]. The rapid upward trend erased a significant portion of the bearish losses that had been accumulating earlier in the month, shifting investor sentiment toward renewed optimism.

Ethereum, the second-largest cryptocurrency by market capitalization, was also heavily impacted, with ETH trading at $4,309.29 and a market cap of approximately $520.17 billion. Despite a 3.50% decline over the previous 24 hours, ETH had posted a 19.61% gain over the past 30 days, highlighting the asset’s volatility and resilience amid broader market corrections [2].

The liquidation event occurred against the backdrop of a broader risk-on environment, supported by a stronger-than-expected U.S. Producer Price Index (PPI) reading for July, which showed an annual increase of 3.3%. While this macroeconomic data did not directly influence crypto markets, it contributed to a general sense of optimism across asset classes [4].

The speed and scale of the liquidation underscored the concentrated risk in leveraged positions during periods of rapid price movement. Analysts have noted that the drop in trading volume following the surge indicated a period of consolidation, with investors and traders waiting for new catalysts to determine the next market direction [3]. The incident has sparked renewed calls for regulatory scrutiny and tighter protocols to prevent excessive leverage in crypto trading, particularly in derivatives markets where algorithmic trading can accelerate price swings [1].

This episode serves as a stark reminder of the risks associated with leveraged trading in a highly volatile market. As institutional participation and leverage levels continue to rise, similar large-scale liquidation events may become more common, further shaping the evolving landscape of crypto trading and investor behavior [1].

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Source:

[1] Bitcoin, Ethereum Close in on New All-Time Highs After ...

https://www.msn.com/en-us/money/markets/bitcoin-ethereum-close-in-on-new-all-time-highs-after-700m-in-crypto-liquidations/ar-AA1Ki3Re?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&ocid=finance-verthp-feeds&renderwebcomponents=1&wcseo=1

[2] ETH would break the mainstream market

https://www.facebook.com/groups/2028862550588932/posts/3510968215711684/

[3] 1️⃣ Market Overview BTC is trading at ...

https://www.instagram.com/p/DNb4r2myoOf/

[4] Latest HotJulyPPI News, Opinions and Feed Today

https://www.binance.com/en/square/hashtag/HotJulyPPI